Article by:
Anna Leah Gonzales
MANILA – Prolonged tensions in the Middle East continued to weigh on investor sentiment, causing the Philippine Stock Exchange index (PSEi) to decline anew on Monday, while the peso also dropped to a new record low.
The PSEi moved to 5,869.49, down by 1.73 percent, while All Shares fell by 1.20 percent to 3,295.85.
Except for Services, all sectoral indices closed in the red, led by Mining and Oil, which dropped by 2.42 percent, followed by Holding Firms, which declined by 2.30 percent.
Volume of trade reached 746.28 million. Decliners led advancers at 126 to 74, while 60 shares were unchanged.
"The Philippine market opened the week lower as the Middle East war entered its fifth week. The conflict continued to escalate despite ongoing efforts to reach a diplomatic resolution," Luis Limlingan, Regina Capital Development Corporation head of sales, said in a Viber message.
Limlingan said the conflict continued to weigh on market risk appetite, as both geopolitical and economic factors persistently dampen investor sentiment.
He said external uncertainties and macroeconomic pressures continue to drive cautious trading behavior across markets.
The peso, meanwhile, hit another record low of 60.69 to a dollar.
It opened at 60.55 from the previous day's 60.33 start, and traded between 60.55 to 60.84, bringing the day's average to 60.74.
Volume of trade went up to USD2 billion from USD1.33 billion last Friday.
"Markets are pricing a prolonged war," Reyes Tacandong & Co. Senior Adviser Jonathan Ravelas said in a Viber message, adding that the peso will likely trade within 60.60 to 60.90 to a dollar level in the coming days. (PNA)
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